Financial Performance - For the six months ended June 30, 2022, the company's revenue and net profit were approximately RMB 196.1 million and RMB 49.9 million, representing growth of approximately 14.1% and 13.1% respectively compared to the same period in 2021[7]. - Revenue increased from approximately RMB 171.8 million for the six months ended June 30, 2021, to approximately RMB 196.1 million for the six months ended June 30, 2022, representing a growth of approximately 14.1%[16]. - Gross profit rose from approximately RMB 78.6 million for the six months ended June 30, 2021, to approximately RMB 86.4 million for the six months ended June 30, 2022, reflecting an increase of approximately 9.9%[16]. - Profit attributable to owners increased from approximately RMB 44.1 million for the six months ended June 30, 2021, to approximately RMB 49.9 million for the six months ended June 30, 2022, marking a growth of approximately 13.1%[16]. - Basic and diluted earnings per share rose from RMB 7.43 cents for the six months ended June 30, 2021, to RMB 8.32 cents for the six months ended June 30, 2022, an increase of approximately 12.0%[16]. - Profit before tax increased to RMB 67,542 thousand, up 12.3% from RMB 60,192 thousand in the prior year[77]. - Net profit for the period was RMB 49,916 thousand, a rise of 13.0% compared to RMB 44,120 thousand in the same period last year[77]. - The company reported a total comprehensive income of RMB 50,077 thousand for the period, compared to RMB 44,138 thousand in the previous year[77]. Market and Product Development - The company currently holds 71 drug approval numbers and approximately 60 types of traditional Chinese medicine products, targeting various therapeutic effects[9]. - The company is collaborating with Heilongjiang University of Chinese Medicine to develop new products, including the Qi Dan Yu Feng capsule[12]. - The company is enhancing the quality of its original product "Xin An Capsule," with the research for product strengthening nearing completion[12]. - The company aims to diversify its product portfolio and increase revenue in response to favorable policies and market trends[13]. - The company anticipates that the aging population and increased health awareness in China will continue to drive the growth of the traditional Chinese medicine industry[13]. Distribution and Sales - The company has expanded its distribution network to 83 distributors covering about 40 cities in China[9]. - The company plans to expand its distribution network and sales channels to increase revenue and capitalize on the growing public awareness of traditional Chinese medicine[22]. - The company's sales in the Northeast region achieved approximately 18.3% growth, accounting for over 50% of total revenue as of June 30, 2022[9]. - The sales revenue from the Northeast and South China regions contributed approximately RMB 109.2 million and RMB 32.1 million, respectively, for the current period, compared to approximately RMB 92.3 million and RMB 30.0 million for the six months ended June 30, 2021[20]. Financial Position and Cash Flow - As of June 30, 2022, the total assets of the group were approximately RMB 429.2 million, an increase from RMB 395.9 million as of December 31, 2021[30]. - The net cash generated from operating activities during the period was approximately RMB 58.5 million, a significant increase from RMB 24.9 million for the six months ended June 30, 2021[33]. - The group's total liabilities as of June 30, 2022, were approximately RMB 50.1 million, down from RMB 58.6 million as of December 31, 2021[30]. - Cash and cash equivalents increased to RMB 221,806 thousand from RMB 176,091 thousand at the end of 2021, reflecting a growth of 25.9%[79]. - The net cash used in investing activities was RMB (4,060,000) for the six months ended June 30, 2022, a significant improvement from RMB (40,128,000) in the same period of 2021[87]. - The company reported a net cash used in financing activities of RMB (8,570,000) for the six months ended June 30, 2022, compared to RMB 115,931,000 in 2021, indicating a reduction in financing outflows[87]. Expenses and Liabilities - Sales and distribution expenses increased by approximately 18.6% from approximately RMB 9.5 million for the six months ended June 30, 2021, to approximately RMB 11.2 million for the current period[28]. - Administrative and other operating expenses decreased by approximately 13.1% compared to the six months ended June 30, 2021, mainly due to a reduction in R&D expenses[28]. - The total income tax expense for the six months ended June 30, 2022, was RMB 17,626,000, up from RMB 16,072,000 in the same period of 2021, indicating an increase of about 9.7%[106]. - The company identified two major risks in 2021: policy risk and market competition risk, which could significantly impact its operations[72]. Shareholder Information - As of June 30, 2022, the company has 450,000,000 shares held by Mr. Xie (deceased), representing 75% of the company's equity[54]. - The company did not recommend an interim dividend for the six months ended June 30, 2022, consistent with the previous year[112]. - The company has maintained a sufficient public float of at least 25% of its issued shares as required by the listing rules[70].
现代中药集团(01643) - 2022 - 中期财报